It’s something many of us likely take for granted – a safe and happy place to call home. And that’s why grade four, five and six students across Canada are being asked to think about the meaning of home for an essay contest through Genworth Canada and Habitat for Humanity Canada.

Brian Hurley answers questions about the potential impact of the latest round of mortgage rule changes. “The new mortgage rules do present a challenge to affordability and access to the market for some people, but it is important not to make presumptions. A lot of people who think they should now just sit it out on the sidelines would probably be qualified buyers under the new rules. In fact, at Genworth, more than 80 per cent of borrowers who qualified for the 30-year term would have also qualified for the 25-year term,” said Mr. Hurley.

Recognizing the value of homeownership to Canadians, the government offers incentives to help first-time homebuyers get their financial footing. In this first in a series of columns contributed by Genworth Canada, are described some popular offerings that thousands of Canadians have taken advantage of.

Genworth Canada has launched its sixth annual Meaning of Home contest in support of Habitat for Humanity Canada. The contest invites students in grades 4, 5 and 6 across Canada to submit a written essay about the meaning of home for a chance to direct $60,000 to a Habitat for Humanity home of their choice in Canada and win a pizza party for their entire school.

“All of us at Genworth Canada take great pride in our Meaning of Home contest,” Brian Hurley, chairman and CEO of Genworth Canada, said in a news release. “It’s extremely gratifying to know we are not only helping inspire children to write but we are also teaching them that every little gesture can make a difference.”

Royal LePage has a new strategic relationship with mortgage insurer Genworth Canada. The idea is to better equip agents for conversations around how much their clients can afford and what options are available to them. The relationship makes educational resources available to the Royal LePage network on mortgage insurance, energy-efficient refunds, homeowner assistance programs and discounts at select retailers across Canada. “First-time buyers are looking for more from their Realtor than help finding a new home,” says Debbie McPherson, senior vice-president, sales and marketing at Genworth Canada. “Helping Royal LePage keep their clients well-informed on the options around responsible homeownership will, in turn, help them to better service their clients.”

Brian Hurley comments on the Company’s innovative and effective approach to dealing with foreclosure sales. “This much more active role we’re taking by hiring our own realtors in house has certainly helped mitigate our losses and has been very effective,” Mr. Hurley told analysts.

A new condo report suggests first-time buyers, retirees and population growth will continue to fuel demand and price growth for the compact living spaces over the next few years. The study by Genworth Canada found that average condo resale prices are expected to rise next year in seven of the eight metropolitan centres studied.

“This data corroborates our view that the demand for condos in Canada, particularly at the price-point we insure, is well supported by our economy and our population,” said Brian Hurley, chairman and CEO of Genworth Canada. “For those seeking to own a home affordably in urban centres, condos remain a good option.”

Genworth CEO Brian Hurley said in an interview that he’s feeling confident about the company’s performance, and he doesn’t expect that home prices nationwide will drop to the degree that some of the more bearish forecasters are suggesting. “Condos is a watch area for us here in the GTA, and the high end of Vancouver is a watch area for us,” he added. “We don’t play in that space too much.” A Genworth and Conference Board of Canada report suggests that a growing population and rise in the number of baby boomers will support demand in the national condominium market. Resale prices for condominiums in seven of the eight cities studied are expected to rise a bit next year, while the report forecasts a 2-per-cent decline in prices in Vancouver.

“The new mortgage rules do present a challenge to affordability and access to the market for some people,” says Brian Hurley, CEO of Genworth Canada, a private sector supplier of mortgage default insurance. But this doesn’t necessarily mean prospective homebuyers should give up on their dream. “Don’t presume anything,” says Mr. Hurley. “A lot of people who think they should now just sit it out on the sidelines would probably be qualified buyers under the new rules. In fact, at Genworth more than 80 per cent of borrowers who qualified for the 30-year term would have also qualified for the 25-year term.” It’s also a good idea to consult a financial adviser, who can offer suggestions for accelerating saving for a down payment, says Mr. Hurley.

Debbie McPherson, senior vice president, sales and marketing at Genworth Canada, suggests a two-step process for first-time homebuyers. "One is getting a plan," she says. "Meet with your financial adviser or mortgage professional to make sure you understand what's involved in ownership."

The second critical step in buying that first home, says McPherson, "is understanding, based on your income, what you can afford." This may seem like an obvious point, but excitement and emotions kick in when house hunting and can easily blur financial reality.

Rob McLister of Canadian Mortgage Trends discusses first-time homebuyers, housing risk and causes of default with Genworth Canada CEO Brian Hurley. On the question of what the average down payment for a first-time buyer is, Brian Hurley states “Going back to our own database and our own portfolio, which I think is a pretty good indicator, our average loan-to-value is about 90%, so the average down payment for this group would be about 10%. A lot of variability there, but I think that’s a pretty good benchmark.”

Homebuyers have two basic options to consider: conventional mortgages, which require at least a 20 per cent down payment; and high-ratio mortgages, which are designed for people who do not have the 20 per cent down payment. Borrowers with high-ratio mortgages are required to purchase mortgage default insurance.

“Mortgage insurance is what allows a large part of the population to access homeownership sooner,” says Debbie McPherson, senior vice-president of sales and marketing at Genworth Canada. “Our priority is to provide first-time homebuyers with the information they need to make good decisions and achieve their homeownership goals.”